BMW Motorrad India considers setting up used bike programme to fill product gaps - Report

BMW Motorrad is mulling about implementing its used motorcycle programme in the country, reports Overdrive.

BMW Motorrad has joined hands with TVS Motor Company for manufacturing its entry-level motorcycles, the BMW G 310 R and the G 310 GS. The two bikes will enter our shores in the second half of 2018. On the other end of the spectrum, a number of CBU offerings are already available in India through official dealerships, since April 2017. They serve the INR 15 lakh category and above. Between the 300cc offerings and the CBU products, there is no in-between. To cater to this gap in the market, BMW can either bring mid-capacity motorcycles through Thailand (BMW has an assembly plant in Rayong, Thailand); or the brand can set up manufacturing or assembly plant in India.

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While the former requires less investment than the latter, it can result in improved affordability compared to CBU units. This is thanks to the Free Trade Agreement between India and Thailand. Dimitris Raptis, sales head for BMW Motorrad, Asia, China, Pacific and South Africa says that the bikes would require homologation to enter Indian market as per the rules in the country. Setting up operations in India would reduce the cost of the bikes, but would require more investment and time as well.

On the other hand, setting up a used motorcycle business is ideal to bridge the gap between entry-level offerings and the CBU products. Timo Resch, head of sales and marketing BMW Motorrad opines that compared to CBU and assembled middleweight bikes, used motorcycle programme is easier to implement. However, BMW has not revealed about the timeline of implementation. Expect more details to unfold in the coming months.

[Source: Overdrive]